Marathon Digital Seizes Full Control of Two US Bitcoin Mining Sites With a $13.5 Million Move
Marathon Digital and Hut 8 have reached an agreement for Marathon to take full operational control of recently acquired Bitcoin mining sites in Granbury, Texas, and Kearney, Nebraska.
In this arrangement, Marathon will pay Hut 8 a $13.5 million termination fee. The transition of operational responsibility is slated for completion by April 30, during which Hut 8 will continue to provide managed services and conduct self-mining activities.
Hut 8 President Asher Genoot expressed pride in the teams’ work at the Kearney and Granbury sites, acknowledging their talent and dedication. The acquisition of ownership rights for the sites from Generate Capital by Marathon was finalized on January 16 for $178.6 million. Despite the ownership change, Hut 8 has been managing operations based on its existing agreement with the former owner.
Hut 8 inherited the service agreement following a merger with USBTC last year, with the contract having a remaining term of over four years valued at $1.2 million per month, as previously reported.
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On January 30, subsidiaries of Marathon and Hut 8 mutually agreed to terminate the contract, facilitating the handover of operational responsibilities to Marathon. This move is expected to result in a reduction of operating fees for Marathon, thereby improving the cost efficiency of Bitcoin mining at the Granbury and Kearney sites.
Marathon’s Chairman and CEO, Fred Thiel, expressed anticipation about the company’s increased influence over the Texas and Nebraska sites, emphasizing the goal of fully realizing the operational and economic benefits of owning these assets. Thiel looks forward to leveraging Marathon’s operational expertise to maximize the advantages of the recent acquisition.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
